Maureen Megowan's Blog

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Interest Rates Unchanged this week

Interest rates for buying a home on the Palos Verdes Peninsula stayed level this week.The following are excerpts from the newsletter on interest rates published by HSH Associates :

 

" For mortgage rates, it's all about where we are going (or expect to go), not where we have been. Although the economic climate is by no means brilliant at the moment, it's certainly better than the one we endured to begin the year. Even so, there is perhaps more hope and optimism being expressed in current interest rates than is borne out by the most recent economic data.

The economy continues to struggle to find reliable traction, most especially in the first quarter of this year and last. Last year's stumble gave way to several quarters of strong growth and gains in hiring, and there is a chance that this pattern will be repeated again this year. If so, the lowest mortgage rates 

 

 

Long-term interest rates (and mortgage rates) are of course forward-looking by their nature. Soft economic patches aside, interest rates have nudged higher this spring not because the current climate is much to write home about, but rather that the prospects for more widespread growth (here and abroad, especially in the Eurozone) are improving. That said, it seems as though it will be more of a slowly rising tide lifting all boats for this go-round, rather than the U.S. pulling hard to help keep afloat many other economies.

Also, no panic here and certainly less over there seems to have softened the conditions which produced recent lows for rates, which are likely to be sticky around these levels, give or take a little. If everything goes according to expectations (a process not likely, or at least not smoothly) we may be soon be at or near the start of a long and gradual upturn for rates. Before then, we will need to take the first step, probably in September, and see where we'll go from there.

Next week's got a cascade of fresh data to ponder. The employment report for May will be joined by the twin ISM surveys, the Fed's regional survey of economic conditions, personal income and spending, auto sales and more. All the May data is likely to be better than any remaining April data, but all that seems at stake is a reaffirmation that September is the likely starting point for a change to rates, a happenstance that seems mostly "built in" to rates already. At the moment, we appear to be on a level plane for rates next week, but a stronger tenor to the data might see a couple of basis point rise."

The following are interest rates quotes from American California Financial:

30 Yr Fixed FHA

Rate

APR

 

       

3.250

4.379

Details

       

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

3.875

3.994

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 - $625500

Rate

APR

 

       

4.000

4.109

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

4.125

4.219

Details

       

 

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)

Rate

APR

 

       

3.375

3.392

Details

       

For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com . I try to make this the best real estate web blog in the South Bay Los Angeles and the Palos Verdes Peninsula. I would love to hear your comments or suggestions.

Comment balloon 0 commentsMaureen Megowan • May 30 2015 12:38PM
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